Interest rate suge, downsizings, prior overappreciation, and apparently HUGE pent up evictions are driving this.
http://www.zerohedge.com/markets/us-rents-verge-first-annual-drop-covid-crash-amid-supply-glut
US Rents On Verge Of First Annual Drop Since Covid Crash Amid Supply Glut
by Tyler Durden
Saturday, May 13, 2023 - 09:55 AM
While we already know that according to much-delayed CPI data, annual shelter inflation has just peaked at just under 9% annual growth, and will now be trending lower for the next 18-24 months.
But while the roughly 12 month delayed CPI data brought some good news, there was much better news in the latest monthly Rental Market Tracker from Redfin, which unlike the CPI, provides a real-time snapshot of the rental market. What it shows is that not only have rents peaked, but the median U.S. asking rent is about to turn negative on an annual basis, having risen just 0.3% year over year to $1,967 in April. That’s the 11th-consecutive month of slowing growth, and is the first (effectively) unchanged print since the covid crash in March 2020. It compares with a revised increase of 1.4% one month earlier and a 16% increase one year earlier. More importantly, extending the current trendline suggests that rents will now decline on an annual basis for the foreseeable future.
On a month-over-month basis, the median asking rent fell 0.2%, which is notable because rents typically rise at this time of year.
(continued at link, with graphs, etc.)
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